Correlation Between YieldMax BABA and YieldMax Short

Can any of the company-specific risk be diversified away by investing in both YieldMax BABA and YieldMax Short at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining YieldMax BABA and YieldMax Short into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between YieldMax BABA Option and YieldMax Short NVDA, you can compare the effects of market volatilities on YieldMax BABA and YieldMax Short and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in YieldMax BABA with a short position of YieldMax Short. Check out your portfolio center. Please also check ongoing floating volatility patterns of YieldMax BABA and YieldMax Short.

Diversification Opportunities for YieldMax BABA and YieldMax Short

-0.52

Correlation Coefficient

YieldMax BABA  YieldMax Short

Excellent diversification

The 3 months correlation between YieldMax and YieldMax is -0.52. Overlapping area represents the amount of risk that can be diversified away by holding YieldMax BABA Option and YieldMax Short NVDA in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on YieldMax Short NVDA and YieldMax BABA is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on YieldMax BABA Option are associated (or correlated) with YieldMax Short. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of YieldMax Short NVDA has no effect on the direction of YieldMax BABA i.e., YieldMax BABA and YieldMax Short go up and down completely randomly.

Pair Corralation between YieldMax BABA and YieldMax Short

Given the investment horizon of 90 days YieldMax BABA Option is expected to generate 1.69 times more return on investment than YieldMax Short. However, YieldMax BABA is 1.69 times more volatile than YieldMax Short NVDA. It trades about 0.33 of its potential returns per unit of risk. YieldMax Short NVDA is currently generating about -0.13 per unit of risk. If you would invest  1,251  in YieldMax BABA Option on July 9, 2025 and sell it today you would earn a total of  712.00  from holding YieldMax BABA Option or generate 56.91% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Very Weak
Accuracy	100.0%
Values	Daily Returns

YieldMax BABA Option  vs.  YieldMax Short NVDA

YieldMax BABA Option

Risk-Adjusted Performance

Strong

Compared to the overall equity markets, risk-adjusted returns on investments in YieldMax BABA Option are ranked lower than 26 (%) of all global equities and portfolios over the last 90 days. In spite of very uncertain fundamental drivers, YieldMax BABA displayed solid returns over the last few months and may actually be approaching a breakup point.

YieldMax Short NVDA

Risk-Adjusted Performance

Weakest

Over the last 90 days YieldMax Short NVDA has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of latest inconsistent performance, the Etf's basic indicators remain stable and the newest uproar on Wall Street may also be a sign of mid-term gains for the exchange-traded fund private investors.

Pair Trading with YieldMax BABA and YieldMax Short

The main advantage of trading using opposite YieldMax BABA and YieldMax Short positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if YieldMax BABA position performs unexpectedly, YieldMax Short can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in YieldMax Short will offset losses from the drop in YieldMax Short's long position.

The idea behind YieldMax BABA Option and YieldMax Short NVDA pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Economic Indicators module to top statistical indicators that provide insights into how an economy is performing.